Category: CFA
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Crypto’s Unanswered Question: At What Price?
How do you make buy and sell decisions with cryptoassets? The answer remains elusive.
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The Return Distribution of Bitcoin
A look at daily and monthly bitcoin return distributions. Which distribution best describes the observed data. And, what does this mean from a portfolio management perspective?
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Wealth Management in the Algocen Era: A Speculative Future
What does investing look like in 2038?
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Bernoulli’s Prisoner’s Dilemma: A Goals-Based Perspective
In 1738, the Swiss mathematician and physicist Daniel Bernoulli proposed a simple thought experiment: “A rich prisoner who possesses two thousand ducats but needs two thousand ducats more to repurchase his freedom, will place a higher value on a gain of two thousand ducats than does another man with less money than he.” Let’s continue to play this…
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On Horses, Tractors, and Markets
Growing up on a cattle ranch in central Texas, I developed a certain respect for the tools of the trade. Horses, tractors, trucks, trailers, bailing wire, and duct tape we all daily-use items for us. Each tool has its purpose, of course, and each tool has advantages and disadvantages for a particular job. Take, for…
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Why You Should Be a Goals-Based Investor
Imagine for a moment that you owe a violent loan shark $10,000 by tomorrow morning. But today you have only $7,000. Now suppose you visit an economist for help. You desperately ask, “What am I to do?!” Our economist, being highly trained, administers a risk-tolerance questionnaire to gauge your preferences about risk. As it turns…
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How to Pass the CFA Exam on Your First Try
I passed Levels I, II, and III on my first try, and completed them all within the fastest possible time of 18 months. In addition, I scored in the 90th percentile on the Level III exam (I honestly don’t remember my percentiles for I and II). While I wouldn’t consider myself an expert, I believe…
· CFA
Franklin J. Parker, CFA 